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Decision Analysis – Upgrade your decision making skills.

Decision making is an essential part of any project and managers, team leaders, process owners and business owners often find themselves in a position where they have to take critical decisions and business decisions means lot is at stake in terms of finances and resources so intuition based decision making should be avoided, right way to take decisions is to back them with a proper technique and facts.

In this article we will try to understand the concept of analytical decision making using tools such as Decision Process Flowchart and Decision Tree Diagram.

Decision analysis is a great tool when

Company has to introduce a new product.

Decisions regarding mergers have to be made.

Critical decisions regarding business expansion have to be made.

Decisions regarding huge investments.

Elements of Decision Analysis

Actions

Chance Occurrences

Probabilities

Final Outcome

Additional Information

Decisions

Basically, decision analysis provides complete information on how to proceed at any given stage or circumstances.

Tools Used

Decision Process Flowchart also known as Logic Diagram or Decision Model, this is the tool that assists managers and teams to arrive at better decisions as possible alternatives are branched in a logical path exposing all possible outcomes of decisions made.

Decision Tree Diagram also known as Decision Flow Analysis, this tool helps the team to display the outcomes or expected values of several possible alternatives and their probability of occurrence and this allows managers and teams to rationally analyze alternate decisions and select best possible choice.

You can check the detailed video lecture on this topic and application of these tools here.

VJPabout 3 years agoVJ P
Hello..
I often listen to your lectures and have benefited greatly from them.
Do you have a dedicated series to Measure, Analyse, Improve and Control phases also, similar to the Define phase?
Regards,

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